UPDATE 1-Chilean economy flat in second quarter, beats forecasts

SANTIAGO Aug 18 (Reuters) - A slight improvement in most
sectors of the economy led Chile's gross domestic product to
beat forecasts for the second quarter, registering zero growth
compared with the prior quarter but expanding 1.9
percent from a year ago.

A Reuters poll had forecast a 0.1 percent fall quarter on
quarter. In both 2014 and 2013 the economy of the top copper
exporter shrunk 0.1 percent in the second quarter compared with
the first quarter.

Compared with the same quarter a year ago, the
economy grew 1.9 percent, the central bank reported on Tuesday,
topping forecasts for 1.7 percent growth. Overall growth in the
first half of the year was 2.2 percent.

Economic growth slowed to a five-year low of 1.9 percent in
Chile last year as mining investments and consumer demand
cooled. The bank expects the economy to gradually rebound this
year, but warned it depended largely on sustained demand from
top trade partner China.

"The GDP result is explained by a marginal increase in most
sectors, alongside falls in fishing and restaurants and hotels,"
the bank said in its report.

The key mining sector was up slightly versus a year ago but
slipped compared to the last quarter. New mines and improved ore
grades have boosted output at some mines, but problems related
to climate, labor relations and equipment have held back others.

In the first quarter of 2015, Chile's economy grew 1.1
percent compared with the final quarter of 2014. On Tuesday, the
bank also revised upwards slightly its growth figure for the
first quarter to 2.5 percent, compared with a year ago.
(Reporting by Rosalba O'Brien Editing by W Simon and J Benkoe)